Global Health shares declined over 2% in early trade after the company reported its Q3 results, with investors reacting to weaker profitability and a sharp contraction in operating margins, even as revenue posted healthy year-on-year growth.
On a consolidated basis, Global Health’s revenue rose 18.82% year-on-year to Rs 1,121.047 crore in Q3, compared with Rs 943.436 crore in the same quarter last year. The growth reflects continued traction across operations during the quarter, supporting the company’s top-line momentum.
However, profitability came under pressure. EBITDA declined 8.6% year-on-year to Rs 217.29 crore from Rs 237.76 crore in the corresponding period last year. As a result, the EBITDA margin narrowed sharply to 19.38% from 25.2%, marking a contraction of 581 basis points on a year-on-year basis. The margin erosion appears to have weighed heavily on investor sentiment following the results.
Net profit for the quarter also saw a significant decline. Global Health reported a 33.5% year-on-year drop in net profit to Rs 95.022 crore, compared with Rs 142.907 crore in Q3 of the previous financial year.